Summary
Enterprise Products Partners L.P. (EPD) announced the public offering of new senior notes totaling $1.25 billion. This offering includes $250 million of 2.800% senior notes due 2030, which represent a re-opening of an existing series, and $1.0 billion of 3.200% senior notes due 2052. These notes are guaranteed by EPD and issued by its subsidiary, Enterprise Products Operating LLC (EPO). The net proceeds from this offering are intended for general company purposes, including growth capital investments and the repayment of debt, potentially including EPO's $750 million senior notes maturing in February 2021. This debt issuance indicates EPD's ongoing capital management strategy and its commitment to funding future growth and managing its debt obligations. Investors should note the specific interest rates and maturity dates for the new notes, as well as the intended use of proceeds, which suggests continued investment in the business and proactive management of its balance sheet. The offering is scheduled to close on August 7, 2020.
Key Highlights
- 1EPD is raising $1.25 billion through the issuance of new senior notes.
- 2The offering consists of $250 million of 2.800% senior notes due 2030 and $1.0 billion of 3.200% senior notes due 2052.
- 3The new notes are guaranteed by Enterprise Products Partners L.P. and issued by its subsidiary, Enterprise Products Operating LLC (EPO).
- 4Proceeds will be used for general corporate purposes, including growth capital investments.
- 5A portion of the proceeds may be used to repay EPO's $750 million senior notes maturing in February 2021.
- 6The closing of the offering is scheduled for August 7, 2020.
- 7EPD also issued a press release on July 30, 2020, related to this debt offering.